Piper Jaffray Companies announced net income of $7.4 million, or $0.36 per diluted common share, for the second quarter ended June 30, 2010, compared to net income of $11.6 million, or $0.59 per diluted common share, for the second quarter of 2009, according to a Wednesday, July 21, company release.
For the first quarter of 2010, net income was $0.5 million, or $0.03 per diluted common share. Second-quarter 2010 net revenues were $127.7 million, compared to $132.3 million in the year-ago period, and $109.6 million for the first quarter of 2010.
"We had mixed performance for the quarter," said Piper Jaffray Chairman and CEO Andrew Duff in the second-quarter 2010 earnings release. "We generated solid investment banking results attributable to equity financing and advisory fee revenues. These results were partially offset, however, by significantly lower fixed income revenues driven by very challenging trading conditions in the second quarter."
Duff noted that Piper Jaffray's backlogs continue to be healthy across equity, public finance, and M&A. "We need constructive capital markets to realize the revenue potential in these backlogs," he said.
After opening in the morning at $30.65, shares of Piper Jaffray (PJC) had fallen 4.86% to $30.65 in mid-afternoon trading.
For the quarter ended June 30, 2010, Piper Jaffray's asset management generated pre-tax operating income of $3.0 million, compared to a loss of $1.4 million in the second quarter of 2009, and operating income of $1.7 million in the first quarter of 2010. Net revenues were $15.7 million, compared to $3.4 million in the year-ago period and $9.2 million in the first quarter of 2010.
"The increased revenues were primarily attributable to a full quarter of results for Advisory Research," according to the company release.
Devin Ryan, an associate director of equity research at Sandler O'Neill + Partners, noted that Q2 was Piper Jaffray asset management's first full quarter with the advisory research platform that the company acquired earlier in the year.
